Hewlett Packard Enterprise’s (HPE) hybrid cloud segment is rapidly growing with Alletra MP adoption, GreenLake cloud expansion, and enterprise AI use cases. The segment saw 14.2% year-over-year growth in Q3 fiscal 2025, shipping over 5,000 Alletra MP arrays and adding 2,000 new GreenLake cloud users.

HPE is innovating its cloud offerings with the Hybrid Cloud Ops Suite and plans to leverage its Juniper Networks acquisition for hybrid cloud, AI, and networking integration. The AI Factory private cloud solutions are also thriving, doubling customer numbers sequentially in Q3 fiscal 2025. Revenue growth estimates for fiscal 2025 stand at 14.6%.

In the competitive global cloud space, Amazon (AMZN) and Microsoft (MSFT) lead with services like AWS and Azure Stack. HPE sets itself apart through private cloud, AI factory, and networking integration. HPE’s stock has gained 10.1% YTD and trades at a forward P/S ratio of 0.79, below the industry average of 3.52.

HPE’s fiscal 2025 earnings are estimated at $1.91 per share, a 4% decrease year over year, with a projected increase to $2.34 per share in fiscal 2026, up by 22.7%. The company’s stock carries a Zacks Rank #2 (Buy), highlighting its growth potential in the cloud and AI space.

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Read more at Nasdaq: HPE’s Hybrid Cloud Revenues Climb: What’s Driving its Growth?